IGI Logo

Key Conference Call Highlights

Industry update & Performance:

* Sales in the auto industry declined 0.4% in H1FY26. Driven by GST reduction on small cars to 18%, improving affordability, a strong 16.7% growth was seen in H2FY26

* FY26 performance remained strong, with revenue growth of 20.2% and net profit reaching record INR 144.4 Bn

* Q4FY26 net profit declined 6.9% YoY due to INR 7.5 Bn mark-to-market loss on investments amid rising bond yields

* Demand remained supply-constrained, with production capacity limiting sales rather than any weakness in underlying customer demand

* Order backlog stood at ~190,000 units, including ~130,000 small cars, reflecting strong unmet demand across key entry-level segments

* Dealer inventory remained tight at ~12 days, indicating sustained demand strength and limited channel stock availability

* First-time buyer contribution increased from 42% in H1FY26 to 51% in Q4FY26, signaling recovery in entry-level demand supported by policy measures

* MSIL continues with a multi-powertrain strategy, balancing ICE, CNG, hybrid and EV rather than focusing on a single technology

* Dzire remained India’s top-selling PV, highlighting the continued relevance of sedans despite rising SUV preference

* SUV strategy is gaining traction and Victorius reaching 50,000 units in the fastest time. MSIL plans to launch ~7 SUVs by the end of the decade

Update on EVs and exports:

* MSIL entered the EV segment with eVitara, targeting development of ~100,000 charging points by 2030.

* eVitara has been developed as a global product with export focus across ~100 international markets.

* Export performance remained strong with MSIL contributing ~49% of India’s total PV exports, reinforcing leadership in overseas markets

* The management highlighted rising geopolitical tensions in West Asia as a potential risk for energy and commodity cost inflation

Capacity expansion and investments:

* MSIL continued aggressive capacity expansion with annual addition of ~500,000 units, termed unprecedented in the global auto industry

* Capex plan of ~INR 140 Bn planned across FY26–27E to support capacity expansion and new product development

* New plants at Kharkhoda and Hansalpur are expected to support scaling up towards ~4 Mn units annual capacity over the medium term

* Management expects steady ramp-up of new facilities, adding ~250,000 units to market supply during the current year

* Rail dispatch share improved to ~26.5% in FY26 from ~5.1% a decade ago, reflecting meaningful logistics efficiency gains

Outlook

* The management expects the company to achieve ~10% domestic volume growth in FY26–27E; this target is notably higher than the industry average estimate of 5%–7%

For Detailed Report With Disclaimer Visit. https://choicebroking.in/disclaimer
SEBI Registration no.: INZ 000160131